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Investors against interpretation of law no 13


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  #1  
Old 14-11-2008, 07:45 AM
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Default Investors against interpretation of law no 13

Dear all,

thanks to the huge respond about the topic. We really need to join and fight for our money.

Most of us worked hard for the money, maybe it is their lifes savings. To recover from a collateral damage with the upcoming recession will be tough or impossible.

As the developers joint forces against us, to achieve this interpretation we should join forces to revers it. Just by some phonecalls yesterday 10 people contacted me to initiate a group, only these 10 people own properties worth 200 Mio AED.

Imagine if we are hundreds !?!

Most of them are stuck because there is no finance available and the offplan sales and resale is dead (of course there are also some specualtors).

Most of these investors invested in Dubai Waterfront.

It makes absolutely no sense to approach the Land Department in small groups, the more we are the better it is.

And the developers shall not forget that they overheated the market by themselves, caused by greed, lies about construction costs to justify their high prices.

A lot of developers dont have enough equity for their projects, they depend only on the purchasers funds, and there will be no bridge finance for them as well.

Developers shall stop fingerpointing to investors, only with their help the market came up and all developers were thankful for the speculation because it helped them to increase their profits.

Many developers will cancel their projects, thats for sure, because their equity is too low and no one will buy offplan anymore.

Please dont believe in wonders or that Shk. Mohmd. will fix everything soon. Dubai is bancrupt, look at the debt. He cannot do anything to help us.

Only Abu Dhabi can, and so far as I know will help to prevent a disaster but only for the governmental developers and institutions.

I dont want to see the developer walk away with my money in 6 month after forfeiting 40% of my life savings ! And believe me gentlemen there are so many intelligent ways to cheat the escrow account.

Some developers had to submit an audit of their Escrow Account, this was possible when somebody complaint about the developer in RERA.

Now they stoped (as per yesterday) to accept complaints. They directly tell you to go to the court. What is now the usage of RERA ?

As far as I am informed ALL the developers which had to audit their escrow account failed ! Amounts of up to 40 Mio AED of purchaser funds were missing in single cases.

Who writes in the newspaper about this ?

RERA told me that only the court can force a developer to audit his escrow account. Does anybody believes after 2 years at the court the funds or the company is still there ?

I know personally that developer used tricks to get funds from the escrow account, e.g. buying commodities like steel, increasing the contractors price and the downpayment for mobilisation to get a kickback an so on !

Its so easy guys to get a invoice for the steel, believe me !

As I think that this is just the top of the iceberg, I am conviced some medium size private developers will misuse the interprettion of law no 13 for their benefit. They will forfeit and after that they will go to Rera with a nice apology to put the project on hold or cancel it.

HOW TO JOIN:

I set up an email adress which is:

investorsagainstinterpretationoflawno13 @ live . com (just make copy and paste)

Please send me the following informations:

First and Last Name
Approx amount of property value in off plan projects
Mobile Number (if you like)
And a short bullet point about your opinion about the interpretation


NEXT STEPS:

We shall gather, in front of the Land Department. I think it is the right place, it will create public awareness and it is for free.

We shall hire a lawyer who is not afraid to fight for us or appoint one of us.

We shall make a petition to the Land Department to achieve that:

1. All contracts, before and after the law is issued are covered by the law

2. The developer can only forfeit 30% of the total payments of the purchaser and needs to refund them in case of reselling the units, cancellation or when he puts the project on hold.

Please forward this email to all other investors you know in Dubai, circulate it through your email and network !

Lets start all together to make the first step for a change. Remember everybody is a part of the chain and part of the success.

And dont be silly guys, everybody who can not continue to pay will loose his money.

Dont listen to the sweet talk of the developers, at the end it is their interest to keep the funds.

I hope for a good reply and also some suggestions.

Regards to the forum

Mohammed
  #2  
Old 14-11-2008, 09:08 AM
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What about people living outside Dubai?

with regards
Djaan
  #3  
Old 14-11-2008, 09:57 AM
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Quote:
Originally Posted by djaan View Post
What about people living outside Dubai?

with regards
Djaan
There's nothing stopping them from sending their details, even though they might not be able to join up in front of the Land Department.

Email sent! Thanks!
  #4  
Old 14-11-2008, 10:11 AM
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Quote:
Originally Posted by mohammedno11 View Post
Dear all,

thanks to the huge respond about the topic. We really need to join and fight for our money.

Most of us worked hard for the money, maybe it is their lifes savings. To recover from a collateral damage with the upcoming recession will be tough or impossible.

As the developers joint forces against us, to achieve this interpretation we should join forces to revers it. Just by some phonecalls yesterday 10 people contacted me to initiate a group, only these 10 people own properties worth 200 Mio AED.

Imagine if we are hundreds !?!

Most of them are stuck because there is no finance available and the offplan sales and resale is dead (of course there are also some specualtors).

Most of these investors invested in Dubai Waterfront.

It makes absolutely no sense to approach the Land Department in small groups, the more we are the better it is.

And the developers shall not forget that they overheated the market by themselves, caused by greed, lies about construction costs to justify their high prices.

A lot of developers dont have enough equity for their projects, they depend only on the purchasers funds, and there will be no bridge finance for them as well.

Developers shall stop fingerpointing to investors, only with their help the market came up and all developers were thankful for the speculation because it helped them to increase their profits.

Many developers will cancel their projects, thats for sure, because their equity is too low and no one will buy offplan anymore.

Please dont believe in wonders or that Shk. Mohmd. will fix everything soon. Dubai is bancrupt, look at the debt. He cannot do anything to help us.

Only Abu Dhabi can, and so far as I know will help to prevent a disaster but only for the governmental developers and institutions.

I dont want to see the developer walk away with my money in 6 month after forfeiting 40% of my life savings ! And believe me gentlemen there are so many intelligent ways to cheat the escrow account.

Some developers had to submit an audit of their Escrow Account, this was possible when somebody complaint about the developer in RERA.

Now they stoped (as per yesterday) to accept complaints. They directly tell you to go to the court. What is now the usage of RERA ?

As far as I am informed ALL the developers which had to audit their escrow account failed ! Amounts of up to 40 Mio AED of purchaser funds were missing in single cases.

Who writes in the newspaper about this ?

RERA told me that only the court can force a developer to audit his escrow account. Does anybody believes after 2 years at the court the funds or the company is still there ?

I know personally that developer used tricks to get funds from the escrow account, e.g. buying commodities like steel, increasing the contractors price and the downpayment for mobilisation to get a kickback an so on !

Its so easy guys to get a invoice for the steel, believe me !

As I think that this is just the top of the iceberg, I am conviced some medium size private developers will misuse the interprettion of law no 13 for their benefit. They will forfeit and after that they will go to Rera with a nice apology to put the project on hold or cancel it.

HOW TO JOIN:

I set up an email adress which is:

investorsagainstinterpretationoflawno13 @ live . com (just make copy and paste)

Please send me the following informations:

First and Last Name
Approx amount of property value in off plan projects
Mobile Number (if you like)
And a short bullet point about your opinion about the interpretation


NEXT STEPS:

We shall gather, in front of the Land Department. I think it is the right place, it will create public awareness and it is for free.

We shall hire a lawyer who is not afraid to fight for us or appoint one of us.

We shall make a petition to the Land Department to achieve that:

1. All contracts, before and after the law is issued are covered by the law

2. The developer can only forfeit 30% of the total payments of the purchaser and needs to refund them in case of reselling the units, cancellation or when he puts the project on hold.

Please forward this email to all other investors you know in Dubai, circulate it through your email and network !

Lets start all together to make the first step for a change. Remember everybody is a part of the chain and part of the success.

And dont be silly guys, everybody who can not continue to pay will loose his money.

Dont listen to the sweet talk of the developers, at the end it is their interest to keep the funds.

I hope for a good reply and also some suggestions.

Regards to the forum

Mohammed
Hi Mohammed,

I have a couple of questions for you:

1)Does your off plan purchase have to be registered with the land department before you can benefit from law 13, which would mean having to find 2% of the purchase price?
2)If you are already in default of your payments would this stop you from been able to register your investment?, because the developer would without doubt tell the land department about your breach of contract and stop the registration, so you would have to bring the payment schedule up to date, which would mean losing 30% of what you are about to pay, just to try and get 70% back of what you have already paid.

Best Regards

Nigel

Last edited by Datum1m; 14-11-2008 at 10:14 AM. Reason: wrong number given
  #5  
Old 14-11-2008, 10:30 AM
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All offplan projects should be registered by now, though the exact details might still be up for transfer to the Land Department. The developer had 60 days from the initial implementation by the end of August, but this might of course be abused by unscrupulous developers.

Mohammed: Need to check this, some problem with the email

This is an automatically generated Delivery Status Notification. Delivery to the following recipients failed. investorsagainstinterpretationoflawno13 @ live.com (I have on purpose put the spaces before and after the @ to not make it to easy understandable by bots....)
  #6  
Old 14-11-2008, 10:40 AM
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1)Does your off plan purchase have to be registered with the land department before you can benefit from law 13, which would mean having to find 2% of the purchase price?

Answer:

You will benefit from law no 13, Article 11 only if you have a new contract. New means as the Land Department told me yesterday, a contractual agreement which was signed after the 31. August 2008.

For all contracts which were signed before that date the provisions of the contract apply.

MY COMMENT:

This means a part of the law will be retrospective (e.g. like registering the units) and the part of the law regarding the compensation not. This is relly ridiculous.

2)If you are already in default of your payments would this stop you from been able to register your investment?, because the developer would without doubt tell the land department about your breach of contract and stop the registration, so you would have to bring the payment schedule up to date, which would mean losing 30% of what you are about to pay, just to try and get 70% back of what you have already paid.

Answer:

Asit is only for contracts after 31.08.2008 I dont think anybody is in default right now. Anyway as far as I know is the registration mandatory (there is a grace period for all developers until the end of this year). Btw. you will loose 30% of the property value! only your payments which exceed 30% will be shared 70/30.
  #7  
Old 14-11-2008, 10:40 AM
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Sorry, I already know that within Law 13 it is down to the developer and not the purchaser to sort out the registration, but what I am asking is if it is not registered for whatever reason do you still get the benefits of Law 13?

Regards

Nigel
  #8  
Old 14-11-2008, 10:59 AM
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From my understanding you do have the rights. But I am also sure that some developers will try not to register you name, with the reason that you are in default of payment.

And than the will try to say that as per article 3, any ancilary rights are void.

Anyway you can only secure 70% of the exceeding amount of 30% of the property value. If you do not have the funds as many others, than its better to loose 10% than 30%.

Or join the group and we can fight to get even 70% of your first payment !

Please use this thread only for the reason of joining the group, there is another thread regarding the explanaiton of the law 13.
  #9  
Old 14-11-2008, 11:03 AM
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Quote:
Originally Posted by mohammedno11 View Post
From my understanding you do have the rights. But I am also sure that some developers will try not to register you name, with the reason that you are in default of payment.

And than the will try to say that as per article 3, any ancilary rights are void.

Anyway you can only secure 70% of the exceeding amount of 30% of the property value. If you do not have the funds as many others, than its better to loose 10% than 30%.

Or join the group and we can fight to get even 70% of your first payment !

Please use this thread only for the reason of joining the group, there is another thread regarding the explanaiton of the law 13.
Please check that email adress, I copied and pasted and my email was returned saying the adress doesn't exist, check post above!
  #10  
Old 14-11-2008, 11:21 AM
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Grass-root action: Contact Form

Get the word out, every mail sent will count in the end. More coverage is needed on this!
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